Markham, Ontario/ Munich, Germany – October 5, 2005 – The newly announced Radeon® X1800 family of products from ATI Technologies Inc. (TSX:ATY, NASDAQ:ATYT) is receiving with widespread acclaim from game developers around the world, excited about all the new opportunities and possibilities presented by this new graphics card. Designed with game developers in mind, the development of the Radeon X1800 focused on four key paradigms – efficiency, flexibility and scalability, Shader Model 3.0 performance and image quality improvements. Each of these attributes can be immediately leveraged by game developers to deliver an enhanced experience to the end user.

“We are excited about the potential of ATI’s new Radeon X1800. Our next generation game architecture, the BioWare Eclipse Engine, makes extensive usage of the X1800's advanced feature set,” said Trent T. Oster, Director of Technology, Bioware Corp. “We are doing some very exciting things on the graphics technology front and ATI is right there with the hardware to support us.”

“The new features of the Radeon X1800 XT - dynamic branching, full HDR support with full screen AA - means that we don't need to spend the time coding new paths to get the results we’re striving for in our games,” said Cevat Yerli, President, Crytek. “Performance with this board with this board has been more than satisfying and we have just started to fully maximize its potential.”

“The optimizations and efficiencies built in to the Radeon X1800 give us incredible freedom with the kinds of effects we can create,” said Jørgen Tharaldsen, Product Director, Funcom. “With the ability to create even longer shaders than in the past, the opportunity to create an even more compelling experience for users and truly unleash the power of the graphics processing unit (GPU) is astounding.”

“The high performance together in conjunction with PS3.0 on the Radeon X1800 has enabled Lionhead to realise our original vision for Black and White 2 where every graphical asset in the game dynamically morphed to reflect the player's personality at the frame rate we wanted,” said Tim Rance, Chief Technology Officer, Lionhead.

“In the development of Alan Wake we have focused on matching our unique storyline with dynamic environments that have yet to be seen in interactive gaming,” said Markus Maki, Development Director, Remedy. “The introduction of the Radeon X1800 family of cards means that we can bring these visuals to life and fully realize our vision as we intended, with incredibly rich and lush settings.”

“Now that HDR and AA is feasible with the Radeon X1800, the added realism in images and environments further pulls users into the game, enabling much more immersive game play,” said Ryan Elam, Technology Director, Sigil. “By fostering the kind of development platform that game developers can go to town with, ATI continues to show their focus and dedication to this market.”

“ATI recognizes the power of giving game developers the tools they need to create breakthrough content for end users and by delivering the Radeon X1800 we have far exceeded their expectations,” said Neal Robison, Director, ISV Relations, ATI. “By looking at the wish list for game developers for graphics hardware and incorporating all these desires into this new product, ATI has focused on delivering the strongest, most feature rich product on the market, which will ultimately give end users unmatched gaming performance.”

About ATI Technologies
ATI Technologies Inc. is a world leader in the design and manufacture of innovative 3D graphics and digital media silicon solutions. An industry pioneer since 1985, ATI is the world’s foremost visual processor unit (VPU) provider and is dedicated to deliver leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstation, set-top and digital television, game console and handheld device markets. With 2004 revenues of US $2 billion, ATI has more than 3,200 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

Important Information Regarding Forward-looking Statements
Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans,” “intends,” “anticipates,” “should,” “estimates,” “expects,” “believes,” “indicates,” “targeting,” “suggests” and similar expressions.

This news release contains forward-looking statements about ATI’s objectives, strategies, financial condition and results. These “forward-looking” statements are based on current expectations and entail various risks and uncertainties. Our actual results may materially differ from our expectations if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Therefore we cannot provide any assurance that forward-looking statements will materialize. We assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Additional information concerning risks and uncertainties affecting our business and other factors that could cause our financial results to fluctuate is contained in our filings with Canadian and U.S. securities regulatory authorities, including our 2004 Annual Information Form and 2004 Annual Report filed on SEDAR at www.sedar.com.